I’ve got another little money saving hack for you today. And that is how to get free credit card cell phone insurance for life. This little hack saves me $5/month or $60 a year and is completely free, all you have to do is a little swapping around with how you currently spend. Check out the details below. Remember that every penny counts when you are working towards your financial freedom goals and early retirement.
Why I Get Cell Phone Insurance (at first)
If you are like me, you rarely buy a new phone. I think the last phone I had was about 4 years old. In terms of new devices coming out, that is a pretty long time. In fact, the only reason I recently purchased a new phone was due to the fact my old one was having hardware issues. I ended up buying a Google Pixel. I also left Verizon and went to Google Project Fi, and I now pay less than $4 a month for my cell phone bill!
The one thing I do invest in though on new cell phones is insurance. Typically I get insurance for a year or two and then just discontinue it. The reason is because new phones can be super expensive to replace if something happens. I have literally seen my brother drop his phone on the ground and the screen shattered in front of my eyes. Ever since then, I always get insurance. The frustrating thing is the cell phone insurance can range anywhere from $4 – $9 a month, which just adds on to your bills.
How to Get Free Credit Card Cell Phone Insurance
I was doing some research on cheaper cell phone insurance and discovered that there are certain credit cards that include free cell phone insurance. I had never heard about this before, and neither had a few people I asked. So here is what I found.
As some of you may know, we are not fans of credits cards. But both Brett and I use one primary card which has the highest cash back, and pay it off at the end of each month. I get around $500 a year for free just by funneling it through my credit card. If you don’t have the discipline to pay it off though, we discourage you from using one. Some people just can’t see to get this part right. If you start paying interest, it defeats the whole purpose.
Dave Ramsey discourages credit cards altogether. But in my opinion, he is dead wrong. If you pay it off each month, there is no reason why you shouldn’t take advantage of the free cash back. You are also building your credit. Which does matter folks. If you ever go buy a house and need a mortgage or even sometimes just renting, you will want a good credit score.
Previously I was using the Quicksilver cash back card from Capital One with no annual fee and $100 bonus upon signup. However, this doesn’t include free cell phone insurance. But the Cash Wise Wells Fargo Visa card does! It also has no annual fee and you get 1.5% cash back. Your current credit card might even already have it! Check your credit card’s website and read the extra account security features. Below is a screenshot from the Wells Fargo website. The feature is hidden in a drop down menu. No wonder nobody knows about this.
Here are the terms of the Wells Fargo free credit card cell phone insurance.
Pay your monthly cellular telephone bill with your eligible Wells Fargo Consumer Credit Card and you’ll get up to $600 protection (subject to a $25 deductible).
Coverage may include up to four cell phones as listed on your wireless cell phone bill. The cellular telephone is protected against damage or theft, however coverage does not include cell phones that are lost.1
Note: Call your cellular provider (or log on to their website) and request to set up automatic payments. Setting up automatic payments is not required to qualify for this cellular telephone protection benefit; however, you need to pay your monthly cellular telephone bill with your eligible Wells Fargo Consumer Credit Card to get up to $600 protection.
Pretty simple right? All I had to do was switch the credit card I was already using to get cash back over to the Wells Fargo card. I am still getting the same cash back, and there are no fees. I pay my bills with the card, which includes my cell phone bill, so I am automatically eligible for the protection up to $600! I can now rest assured that I now have free cell phone insurance for life.
Pretty cool hack right? I am always surprised when I talk to people and mention this that nobody has ever heard of it. They definitely don’t do a good enough job of marketing this feature. I encourage you to check with your current credit card provider first, as you may already have it and could just drop your cell phone insurance. Otherwise, all I had to do was get the new card and switch over my bills. Pretty painless process.
So between moving to Project Fi and switching credit cards, my cell phone costs me less than $4 a month to use and insure! Pretty cool huh? If this was helpful, let us know below. And stay tuned for more money saving hacks!